TLDR:
- Japan is considering allowing investment firms to hold digital assets, opening up new fundraising opportunities for local Web3 startups.
- The Ministry of Trade, Economy, and Industry (METI) approved a new bill that aims to expand strategic domestic investment and support startups and medium-sized companies.
Japan is edging closer to allowing investment firms to hold digital assets, opening new fundraising avenues for local Web3 startups. The Ministry of Trade, Economy, and Industry (METI) approved a new bill that seeks to expand strategic domestic investment and stimulate the growth and expansion of startups and medium-sized companies. The bill partially revises four existing laws to expand investment limits in Japanese companies, including allowing venture capital firms, private equity companies, real estate investment vehicles, and related entities to acquire and hold crypto assets. The amendments are expected to provide a funding boost for Japan’s tech sector, which has historically lagged behind its peers in terms of fundraising. Prime Minister Fumio Kishida has emphasized the importance of digital assets in fueling Japan’s economy, setting a goal of attracting JPY10 trillion (US$72 billion) in startup funding by 2027. The bill has been forwarded to the National Assembly for consideration during its current session, which runs until June.
As Japan moves towards greater adoption of digital assets, the Financial Services Agency (FSA) is also working to strengthen regulatory measures to address fraud involving digital assets in the country. The watchdog has warned banks to enhance their anti-money laundering (AML) and know your customer (KYC) measures to combat fraudulent activities. Overall, the bill represents a significant step towards expanding the use of digital assets in Japan’s investment landscape and supporting the growth of its tech sector.
